The report analyzes the sector for 2011 and compares it with similar activity in 2009 and 2010. This market includes information and technology companies in capital markets, payments, banking, insurance and other related financial services.
The most active acquirer between 2009 and 2011 was Thomson Reuters with 11 transactions. Although transaction volume gained only 2 percent, transaction value increased 43 percent over 2010, from $20.52 billion to $29.78 billion.
There has been a consistent improvement in the number of Capital Markets transactions, which was the only segment that saw an increase from 2010 to 2011. Indeed, the most active market segment tracked by Berkery Noyes between 2009 and 2011 was Capital Markets with 254 transactions, 100 of which were announced or closed in 2011. The segment’s transaction value for the year was $18.17 billion.
The median revenue multiple in the Financial Technology & Information Industry improved from 2.2x to 2.6x, an 18 percent increase, while the median EBITDA multiple decreased from 13.5x to 11.6x.
“At present we are seeing destructive creativity going on in a number of financial service sectors,” said Peter Ognibene, Berkery Noyes managing director. “For instance, smart phones have become digital wallets and are enabling a host of banking and other mobile commerce activities. There has also been an increase in consumer focus on wealth management strategies. And as always in times of turmoil and uncertainty – there is a desire for more precise and forward looking risk management tools, especially enterprise-wide.”
A copy of the FULL YEAR 2011 FINANCIAL TECHNOLOGY & INFORMATION INDUSTRY M&A TREND REPORT is available at the Berkery Noyes website.